Baidu-backed Chinese workforce platform Quhuo raises $33m on Nasdaq

Chinese tech-enabled workforce operational solution platform Quhuo Limited has commanded a market value of $456 million after the company raised $33 million in an initial public offering (IPO) on the Nasdaq Global Market on July 10.

Beijing-based Quhuo offered 3.3 million American depositary shares (ADSs) at a price of $10 apiece, the midpoint of the proposed range between $9 and $11. Its shares surged 109 per cent to reach a peak of $20.90 and then stabilised at the closing price of $12.77 on the debut date.

The company plans to spruce up the development of the workforce management platform and also expand its marketing network. 

Quhuo, which was co-founded by former DHL’s executives Leslie You Yang, Yang Shuyi and Ba Zhen in 2012, provides tech-driven and end-to-end services to consumer service brands.

It leverages freelancing workers to support efficient services for sectors such as food delivery, ride-hailing, bike-sharing and housekeeping across 73 cities. It counts a portfolio of Chinese giants as top clients including Meituan, Alibaba’s Ele.me, Mobike, Didi, among others. 

Revenues from food delivery business accounting for over 98 per cent of annual earnings for the third year in a row. During the same period, Quhuo generated annual revenue of 655 million ($94 million), 1.48 billion yuan ($211 million) and 2.01 billion yuan ($294 million), respectively. It also recorded net losses of 13.4 million yuan ($1.9 million) in 2019 and 11.1 million yuan ($1.6 million) for the first quarter of 2020.  

Following the IPO, Chinese search engine giant Baidu will remain the largest external shareholder with 11.46 per cent stake and 4.56 per cent voting right, while Japanese SoftBank China Capital (SBCVC) and ClearVue will hold 11.24 per cent and 6.97 per cent interest respectively.

Baidu and SBCVC had collectively infused ‘tens of millions of USD dollars’ in Quhuo’s Series B round of financing in 2014. Besides, SBCVC had also participated in its Series A and C rounds. 

Quhuo’s prominent backers also include Taiwan CDFH’s cross-border investment arm CDIB Venture Capital, Zhongnan Group, Fusi Capital, Long Capital, iStart Venture Capital, and PreAngel. 

Shares of Quhuo are listed under the symbol “QH.” Roth Capital, Valuable Capital, and Tiger Brokers served as the joint underwriters for the deal.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.